Correlation Between Fa 529 and Tiaa-cref Growth
Can any of the company-specific risk be diversified away by investing in both Fa 529 and Tiaa-cref Growth at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fa 529 and Tiaa-cref Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fa 529 Aggressive and Tiaa Cref Growth Income, you can compare the effects of market volatilities on Fa 529 and Tiaa-cref Growth and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fa 529 with a short position of Tiaa-cref Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fa 529 and Tiaa-cref Growth.
Diversification Opportunities for Fa 529 and Tiaa-cref Growth
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FFCGX and Tiaa-cref is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fa 529 Aggressive and Tiaa Cref Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Growth and Fa 529 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fa 529 Aggressive are associated (or correlated) with Tiaa-cref Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Growth has no effect on the direction of Fa 529 i.e., Fa 529 and Tiaa-cref Growth go up and down completely randomly.
Pair Corralation between Fa 529 and Tiaa-cref Growth
Assuming the 90 days horizon Fa 529 is expected to generate 1.3 times less return on investment than Tiaa-cref Growth. But when comparing it to its historical volatility, Fa 529 Aggressive is 1.09 times less risky than Tiaa-cref Growth. It trades about 0.22 of its potential returns per unit of risk. Tiaa Cref Growth Income is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,466 in Tiaa Cref Growth Income on May 30, 2025 and sell it today you would earn a total of 164.00 from holding Tiaa Cref Growth Income or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Fa 529 Aggressive vs. Tiaa Cref Growth Income
Performance |
| Timeline |
| Fa 529 Aggressive |
| Tiaa Cref Growth |
Fa 529 and Tiaa-cref Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fa 529 and Tiaa-cref Growth
The main advantage of trading using opposite Fa 529 and Tiaa-cref Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fa 529 position performs unexpectedly, Tiaa-cref Growth can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tiaa-cref Growth will offset losses from the drop in Tiaa-cref Growth's long position.| Fa 529 vs. Vest Large Cap | Fa 529 vs. Nuveen Large Cap | Fa 529 vs. Jhancock Disciplined Value | Fa 529 vs. Cb Large Cap |
| Tiaa-cref Growth vs. Goldman Sachs Government | Tiaa-cref Growth vs. Ridgeworth Seix Government | Tiaa-cref Growth vs. Blackrock Government Bond | Tiaa-cref Growth vs. Us Government Securities |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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